German translation: Verbindlichkeiten aus Währungsbewertung
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English to German translations [PRO] Bus/Financial
English term or phrase: Liability on Forex Remeasurement
At the end of the financial year, the existing foreign exchange balances are revalued at the rate prevailing in the year end. As a result, there may arise a liability indicating extra amount due from the company(user) to vendors.
For example- the vendor balance may be $ 1000 (assuming base currency is USD) and Rs 50000 (in the foreign currency) on 30th Novemeber 2001(forex rate as on date being $1=Rs50).
At the year end (31st December 2001), if the forex rate is $1=Rs 60.
Then the vendor balance in the foreign currency will be Rs 50000, but to account for the addditional liabilty that may arise on 31st Dec 2001, Liability on Forex remeasurement will be $ 166.67 (Rs 10000/60).
This is a contra account (of the nature asset/liablity) to Gain/Loss on forex remeasurement.